A small business begins with just one optimistic page of policies, like:

• “No need for permission to buy a gift that delights a client.”
• “Park in the back so customers get the good spots.”
• “Work from home if you have a cold.”

The owner is enthusiastic about a “flat structure” and creating a culture that reflects their values.

However, as issues arise, more policies are added, each reacting to a very specific situation.

These very specific policies complicate things and usually don’t scale well.

Here are some real examples, written in the heat of a “one-off” employee issue.

• “Smokers are often nose-blind to the smell of their clothes. Please use Febreeze if you smoke. There’s a bottle in each restroom.”
• “Employees’ family members may not drive company cars.”
• “If your painters’ pants are more paint than fabric, it’s time for a new pair. We’ll buy them for you.”
• “No headphones during work hours so you can hear customers.”

With each new rule, the red tape grows.

Eventually, even something simple, like an employee trying to return a $1,000 payroll overpayment, might require three phone calls, two forms, and 12 weeks of waiting for the person who knows what to do to get back from parental leave.